Sustainable Value Creation

An Inevitable Challenge to Business and Society

Author: Teun Wolters

Publisher: Springer Nature Switzerland

Book Series : Sustainable Finance

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

Table of Contents

About this book

Sustainability sheds a whole new light on economic value creation. Sustainable value creation means looking critically at both revenues and costs. Not everything that makes money is of value. Not everything for which no bill is sent is 'free'. This book explains how this is the case and what it means to incorporate sustainability into a company’s strategy and manage activities based on sustainable principles. At the same time, it keeps an eye on the broader societal context in which companies operate, such climate change policies, the SDGs and ESG finance. Since the launch of the concept of sustainable development, many policies at various institutional levels have focused on reducing environmental damage and social ills. This book reflects this broader context. However, despite many serious efforts, it cannot be denied that these policies do not stand up against continued economic growth and a growing global population. This is why this book also stresses that more radical approaches are needed for a successful transformation towards a sustainable society. Businesses should not be content to wait and see what lies ahead. They need to proactively take ownership of the change process that is needed.

The book has eight chapters that discuss the various aspects of sustainable value creation from different points of view, including sustainable management and chain management as well as sustainable accounting and reporting. It gives a concise but well-underpinned picture of what sustainable business means today.

Frontmatter

Chapter 1. Introduction

Abstract

This book is dedicated to corporate sustainability in the context of sustainable value creation for society. It goes into what it means to incorporate sustainability into corporate and related strategies and manage the following activities. At the same time, it keeps an eye on the broader societal context in which companies operate. Since the launch of the concept of sustainable development, many policies at various institutional levels have focused on reducing environmental damage and social ills. This book reflects these policies. However, these policies come up against continued economic growth and a growing global population. This is why this book also stresses more radical approaches for a successful transformation towards a sustainable society. Businesses should not be content to wait and see what lies ahead. They need to take ownership of the change process that is needed proactively.

Teun Wolters

Chapter 2. Sustainable Development

Abstract

Moving towards a sustainable economy requires the involvement and dedication of all segments of society—governments, companies, citizens and NGOs. They must join a worldwide transformation that will lead to drastic economic change. The global nature of this process has already become apparent through the commitment of various United Nations (UN) organisations, such as the United Nations Environmental Programme (UNEP) and the Food and Agricultural Organization (FAO). However, economic change for sustainability can only occur when companies commit to it.

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Chapter 3. Sustainable Value Creation and Management Responsibilities

Abstract

Corporations with operating income create economic value that contributes to society’s prosperity. At least, this is how it should be, but business-based value creation can negatively affect society. For instance, it may be harmful to the environment. Although modern modes of operation have boosted production, it has become evident that they have left a deficit in terms of depletion of natural resources and deterioration of ecological systems and have often caused a great deal of pollution. Because of a growing world population and continued economic expansion, the limits of economic growth are in sight. Consequently, the business community must change course and ensure sustainable value creation.

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Chapter 4. Sustainable Business at the Supply Chain Level

Abstract

Enterprises are encouraged to develop sustainability policies in collaboration with their business partners and other stakeholders. A variety of issues require coordination, regulation and standard procedures. Governments often step in to create a regulatory framework for such developments. An essential element of collaboration in the world of business is the establishment of efficient supply chains.

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Chapter 5. Environmental Management and the Circular Economy

Abstract

Previous chapters discuss the sustainability strategies of companies. However, the implementation of corporate sustainability also needs to be highlighted.

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Chapter 6. Human Resources and Roles in Achieving Corporate Sustainability

Abstract

This chapter discusses the roles of people in achieving corporate sustainability. First of all, it deals with globalisation and its effects on the economies of both developing and developed countries. It appears that the World Bank and the International Monetary Fund (IMF) supported the expansion of trade globalisation for a long time. As such, they followed strict neoliberal policies supported by the G7, including the USA, that strongly influenced those policies. This chapter examines the implications of these policies for employment and income distribution.

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Chapter 7. Corporate Governance and CSR as Vehicles of Corporate Sustainability

Abstract

Corporate governance is how an enterprise governs and controls its strategy and business operations. It also defines the roles of internal and external stakeholders of a company (such as the board of directors, supervisory board, shareholders, employees, financial providers, customers and suppliers) and how they interact. This broad range of interests also includes corporate sustainability and how it operates. Corporate sustainability comes in through a company’s strategies, business model and operational policies; moreover, it can be that various external stakeholders will stress the importance of sustainability and suggest or require concrete actions to contribute to it.

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Chapter 8. Sustainability Accounting and Reporting

Abstract

Conventional accounting measures, plans and monitors an organisation’s finances. It tends to concentrate on stakeholders (internal and external) with a financial interest in the organisation concerned. Sustainability accounting is broader; it includes the interests of a greater variety of stakeholders than conventional accounting.

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Chapter 9. From Green Growth to Post-growth Approaches

Abstract

The UN publication Our Common Future was a seminal report that marked a time in history when development and the environment enjoyed increasing awareness and attention. Development and environment do not go along with each other quickly. To this day, the tension between the two is still there. The concept of sustainable development—meeting the needs of the present generation without compromising the ability of future generations to meet their needs—was thought to be the key to a durable match between development and the environment. By 1987, it was a new perspective by establishing equity and justice between generations and developing a shared understanding of the long-term goals of human life on earth. From there, Our Common Future pleaded for new international governance instruments and action programmes. There was a need for leadership and mutual trust to reach this goal. The subsequent Rio Conferences are a direct result of the suggestion of Our Common Future to have an international conference to address these issues.

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Backmatter

Title: Sustainable Value Creation
Author: Teun Wolters
Publisher: Springer Nature Switzerland
Electronic ISBN: 978-3-031-35351-2
Print ISBN: 978-3-031-35350-5
DOI: https://doi.org/10.1007/978-3-031-35351-2